On February 26, 2026, the Office of the Comptroller of the Currency (OCC) announced their initiative to solicit public input on a set of proposed rules designed to regulate U.S. stablecoins under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This guidance aims at creating a comprehensive framework for how stablecoins can be issued, backed, and supervised, inviting feedback during a 60-day comment period.
The GENIUS Act, which became law after its passage in both houses of Congress and was signed by President Donald Trump in July 2025, marks a watershed moment in financial regulation as it establishes the first federal regulatory framework for payment stablecoins in the U.S. The law permits authorized financial entities to issue payment stablecoins while expressly forbidding digital asset service providers from issuing non-compliant stablecoins to American customers.
According to the draft guidance, the OCC delineates its jurisdiction in enforcing the regulations, encompassing critical components such as reserve asset standards, redemption procedures, liquidity controls, and audit requirements. "This draft clarifies how we intend to oversee stablecoins to ensure robust risk management and consumer protection measures across the board," said Jonathan Gould, the OCC chief.
Moreover, the proposal introduces a “capital and operational backstop” for issuers and revises existing capital adequacy rules to accommodate the evolving financial landscape. It applies to various permitted issuers, including subsidiaries of national banks and specific federal and state entities. Interestingly, it includes provisions for foreign stablecoin issuers, thereby extending OCC oversight to non-domestic entities seeking entry into the U.S. market.
Regulators also emphasized that stablecoin issuers would need to maintain a one-to-one backing with highly liquid assets. "Issuers must redeem stablecoins at par within two business days while establishing a strong risk management framework to address operational and cybersecurity concerns,” said a spokesperson for the OCC. This approach aims to ensure resilience in the U.S. financial framework amid increasing competition from digital currencies.
However, the proposal notably omits regulations pertaining to the Bank Secrecy Act and sanctions, areas the OCC plans to explore separately in collaboration with the U.S. Department of the Treasury. This proposal represents a segment of a broader government initiative striving for consistent rulemaking across federal regulatory bodies, including the OCC, Federal Reserve, and other agencies.
As the OCC rolls out its plans, the GENIUS Act is slated for enactment no later than January 2027, or 18 months post-enactment. Nonetheless, if rulemaking progresses swiftly, the regulations could be activated as early as 120 days after coordination among primary regulators. The prospect of an accelerated implementation has raised concerns among banking lobby groups, who have cautioned that unregulated stablecoin offerings may lead to substantial deposit flight from traditional banks. "We are urging Congress to address loopholes in the GENIUS Act before it takes effect," said a banking lobby representative.
In response to these concerns, Gould remarked during an American Bankers Association conference, "Any material deposit flight would not occur overnight or without notice,” offering a reassuring perspective to financial industry stakeholders.
Munsheer Ahmed, founder and managing director of Finstep Asia, commented on the forthcoming changes, stating, "This regulation essentially integrates the digital asset industry into the traditional finance ecosystem, promoting significant oversight and improved connectivity with banks.” He also asserted that regulated stablecoins could provide a safer alternative compared to traditional banks in times of financial strain, given that banks generally maintain capital ratios of 10-20%, whereas stablecoin issuers would be mandated to have stricter backing standards.
The OCC's steps towards regulating stablecoins signify a pivotal turn in the intersection of digital assets and traditional finance. As the regulatory landscape evolves, it will be pivotal for stakeholders across sectors to engage in the ongoing discourse, ensuring a secure and balanced approach to the adoption of digital currencies in the U.S. market.